Earlier this week, the International Monetary Fund lowered India’s 2017 GDP growth figures to 6.7% (an IMF official called it a blip). Until recently, it was the fastest growing large economy; a position it may soon regain if the 7.4% projections for 2018 are accurate. The country ranks a mere 130 in the Ease of Doing Business index (the government aims to up that to 90 in 2018 and 30 by 2020).

Indeed, the business opportunities that India offers multinational and domestic companies are vast. Yet, the risks involved are significant. Navigating the markets can be tricky – highly fragmented; 29 states each differing culturally, socially & economically; a large informal sector… and a system mired in bureaucracy and complicated regulations and taxes. So what must organisations do to mitigate the risks involved while doing business in India?

We Indians have a lot of quirks. No doubt, people from other cultures have their quirks too, but arguably, we seem to have more of them. For an outsider trying to do business with us Indians, the journey can be both frustrating and entertaining (if you have a sense of humour). As India grows, the sheer weight of the economy will ensure that most of you (or your companies) will eventually do business in India or with Indians. Here are a few tips for the uninitiated.

Do read about how our due diligence research saved an Asian motorcycle manufacturer from getting into a joint venture with a dodgy partner.

As always, we hope you enjoy reading our newsletter, and we look forward to your comments.

Best regards.

Manage your India investment risk

by Nandita Harendra

India’s economy is huge, and growing. The reforms and policies led by the Narendra Modi government will certainly push growth – Make in India initiative, rollout of GST, spending on infrastructure, emphasis on low-cost housing, a new bankruptcy law… and many more. The confidence in India’s economy is evident. FDI in FY17 crossed $60bn (a record!), which was 60% higher than in FY14. Indeed, the business opportunities that the country offers are vast. Yet, the risks involved are significant. While it isn’t easy to accurately assess the risks that come with doing business in India, there are ways to mitigate some of them…

We Indians have a lot of quirks. No doubt, people from other cultures have their quirks too, but arguably, we have more of them. Maybe it’s because we’ve had thousands of years of civilization to acquire these idiosyncrasies, or simply because we’re relatively isolated from the rest of the world. Whatever be the reasons, for an outsider trying to do business with us Indians, the journey can be both frustrating and entertaining (if you have a sense of humour). As India grows, the sheer weight of the economy will ensure that most of you (or your companies) will eventually do business in India or with Indians. Here are a few tips for the uninitiated –